State exploration firm Oil and Natural Gas Corp on Thursday said it will take 26 per cent equity in Bharat Petroleum Corp Ltd's upcoming 6 million tonnes refinery at Bina in Madhya Pradesh.
"We have arrived at a general understanding with BPCL for cooperation and taking 26 per cent equity in Bina refinery and associated facilities is part of it," ONGC chairman and managing director Subir Raha told a news conference.
Oman Oil Company was originally BPCL's partner in Bina but delays over surplus refining capacity in the country saw it restricting its equity to less than 2 per cent in the over Rs 6000 crore (Rs 60 billion) project. The refinery is now scheduled for completion by 2006 end.
ONGC officials said the deal with BPCL also includes the Mumbai-based retailing company helping ONGC in setting up its retail network.
ONGC has a license to set up 1100 petrol stations in the country while its subsidiary Mangalore Refinery and Petrochemicals Ltd has authorisation for 500 petrol pumps.
"We have chalked out a strategy to grow by spending more in discovering new oil and gas and forward integration," Raha said.
The company already has 9.69 million tonnes MRPL in its fold and plans to set up its retail network in 2004-05.
